Timeframe to be fixed for project clearances: Scindia

Under proposed rules, if state or central govts drag feet on clearances, project will be treated as approved

The ministries of power and environment are planning to come up with a policy to allow clearances of major projects within a specific time frame. If the state and Centre governments fail to clear a project within the time frame, the clearances would be considered as deemed, said Union Power Minister Jyotiraditya Madhavrao Scindia on Saturday.

Addressing a panel discussion during the 86th annual general meeting of the Federation of Indian Chambers of Commerce and Industry (Ficci), the minister said, “The power and environment ministries are working together for a policy to allow clearances within a time period. Now, a lot of time is being consumed on environment and forestry clearances at state and Centre levels for power projects. Now, if you won’t get those clearances within a timeline, the clearances would be considered as deemed and the company can start its work.” This comes a day after the Cabinet committee on investment (CCI) asking the power ministry regarding land acquisition of ultra mega power projects (UMPP).  In a meeting last week, headed by Prime Minister Manmohan Singh, the government had asked the power ministry to suggest changes in the existing UMPP norms.

The ministry was batting for consideration of all UMPPs as Central government undertaking projects for speedy clearances.

The CCI has already initiated steps to bring 255 stalled projects worth Rs 10,00,000-crore investments for speedy clearances. Most of them await environment ministry’s nod.

In December, the prime minister’s office had reportedly given directions to clear projects worth Rs 34,647 crore in petroleum and natural gas and power sectors for immediate clearances. Among this, the petroleum sector projects include about Rs 7,947 crore of investment, while that in power sector include about Rs 26,700 crore.

Meanwhile, Scindia added the ministry would circulate two Cabinet notes within a month proposing changes in the Tariff Policy and Electricity Act, 2003. “There would be two separate Cabinet notes and I am speaking to various stakeholders and it is set to come up within a month’s time.  The ministry is in talks with the Central Electricity Authority, Central Electricity Regulatory Commission, principal secretaries of all the state governments and power generation, transmission and distribution utilities in this regard. The ministry has already set up an advisory committee to look into various problems affecting the sector and a meeting of the committee is scheduled on December 24.”